Which of the following does not represent a form of debt finance?
A) bonds
B) loans
C) stock
D) all of the above
C
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As opportunity cost of holding money increases, people can
A) do nothing. B) increase the demand for money but not the quantity of money they hold. C) find a better job. D) try to maximize marginal benefit. E) seek substitutes for money.
In order to ensure consistency across goods and services, elasticities should always be calculated based on absolute changes in quantity demanded
Indicate whether the statement is true or false
Refer to Figure 8.1. Holding other variables constant, an increase in the skill level of workers will result in a
A) shift from curve D1 to curve D2. B) shift from curve D2 to curve D1. C) movement from point A to point B. D) movement from point B to point A.
Supply-side economists argue cuts in tax rates
A) always reduce tax revenues. B) may increase tax revenues. C) always increase budget deficits. D) have no effect on tax revenues.